For those wondering, the derivative is the contract. Considering that the contract is a future, it has a market value and therefore can be traded at a certain price. This price depends on the value of the cows at a certain point in time. Simply put, a derivative is a financial instrument whose value depends on something else (assets, equities, etc.) In this case, the "something else" is represented by the cows.
@mohankrishna8416
7 жыл бұрын
Good one :)
@stevendumont4382
5 жыл бұрын
Thank you Eddie! I now know what derivatives are. Simple and to the point!
@JuniorTennis
4 жыл бұрын
Eddy M. Which contract? Their era eyes here. The first one is the Futures and the second one is the Stop Loss. Which of those two is the Derivative?
@jamessanpedro223
3 жыл бұрын
how the hell is this related to the slope of a tangent
@blast2686
3 жыл бұрын
The cows represent the shares
@courtneyjennette8832
9 жыл бұрын
I was just trying to pass my AP Calculus class and we ended up with cows.
@vikashdhariyal4152
3 жыл бұрын
Did you passed the test mate?
@franklinowen3074
3 жыл бұрын
simple and easy to understand thou
@TheBeastech
5 жыл бұрын
He's talking about derivatives in the finance setting for all of you maths geniuses out there.
@s_v2238
2 жыл бұрын
🤣🤣🤣🤣🤣
@AneesKhan-in3zy
8 жыл бұрын
math students trolled.
@aldrinbenny5412
3 жыл бұрын
So true. I've just watched this video when I was searching for calculus derivatives
@anantanarayanmishra8818
3 жыл бұрын
@@aldrinbenny5412 same here 🤣
@shovan655
3 жыл бұрын
🤣🤣🤣🤡🤡🤡
@Al-Hussainy
3 жыл бұрын
Damn i watched the comment before seeing the vid thanks for the warning😂
@lazyxgaming444
Жыл бұрын
Thanks for the comment . It saved me from being trolled .
@elias.n5616
3 жыл бұрын
I spent every second in this video hoping that the next second would be about calculus derivatives.
@troythegreat777
9 жыл бұрын
Derivatives are also a term in the Financial world
@Hawktotalwar
8 жыл бұрын
+Jo Im sadly a lot of highschool idiots are thinking of the math version
@ishwar8119
8 жыл бұрын
+Curtis I ya me too i thought about the math version(!) LOL
@RajeshKDudnath
5 жыл бұрын
Troy Masonbhavadhajjan
@anonymous__K
4 жыл бұрын
yes
@uvasangovender5120
4 жыл бұрын
Good
@Hawktotalwar
8 жыл бұрын
haha the highschool math students getting so mad
@chandlerkeaton1337
6 жыл бұрын
Curtis I i came here to learn what a derivative is to get ahead in calculus 😂😂 dang it
@nermintamim7107
5 жыл бұрын
Bruv im just as mad and im 11
@Brismo7
10 жыл бұрын
As an American, how can I invest in these cows?
@liambury529
10 жыл бұрын
We have cows in America...
@redeye1267
8 жыл бұрын
LOL
@thealonepunk
7 жыл бұрын
Brismo Just tie a rope to a feminist. same thing.
@JackMeoff46
6 жыл бұрын
Iron Armada I’ve met fine feminists
@bailord8249
5 жыл бұрын
You buy Chainlink while it's still below $1 in 2019.
@corbangurl
10 жыл бұрын
I was struggling with this topic in my accounting class. This video was very helpful and gave me great mental hooks. Thank you for making it! Its funny and very informal!!!!!!
@rostrainco
9 жыл бұрын
Excellent in providing a clear and simple illustration of futures. Love the Indian accent. Thanks for doing this.Keep it up!
@Migaldamez
8 жыл бұрын
Made it 1:42 before I realized that I was looking at the wrong kind of derivatives. But this was still informative and helpful
@tnt73762
8 жыл бұрын
my favorite part is that the currency is rupees. 10/10 would zelda again
@Till27_Spence
3 жыл бұрын
Rupees are a real world currency in India. Just in case you weren't joking
@AM-ok5lf
10 жыл бұрын
I got here looking for the mathematician term of "derivatives" This is the financial one -_- but it was interesting. I am learning English and I admit that I am not completely good at it... But starting from the first 5 seconds of the video I knew that It was and Indian guy hahahaha. I asked myself. Of course, this video is aimed to western audiences but what is an Indian Guys using an Example his "sacred" animals. In as you have seen the example was refereed to sell them to eat, India Mcdonalds are not allowed to use bovine meat on their products. And I know that I could sound kinda extremist but there are a bunch of animals that could be used for this example in a better way without violating cultural dogmas. At the end it was a nice video and I enjoyed it.
@carlofatx
10 жыл бұрын
Same concept. :D
@AM-ok5lf
10 жыл бұрын
carlofatx With what? Were you looking for some math or you are just agree to use cows as a way to get money specially coming from an Indian source?
@carlofatx
10 жыл бұрын
The video is just a different interpretation of the derivative, but the explanation is exactly the same as with the derivative of f in Engineering.
@AM-ok5lf
10 жыл бұрын
carlofatx But the application is focused at the economical use. Not the engineering one.
@muzicoflife
9 жыл бұрын
Alejandro Montoya I appreciate your compassion for animals but on a silde note though the cows can be sold in market for the their milk it is common in India. Also there are some communities in Hindu tradition that eat cows. It is legal in some states of India to slaughter the cows which are consumed by other religious groups.
@bigpunk9143
5 жыл бұрын
Loved it! Been going crazy over derivatives and this just made it so easy to understand Futures Contract 💖 I wish I could learn all the types of derivates this way.
@sagarsuryawanshi8735
4 жыл бұрын
This is the best example i have seen so far, easily understandable.
@hemarishu4664
4 жыл бұрын
I haven't understand the term derivatives for quite a long time, but u made it clear. Wonderful explanation. Tq
@taigi100
9 жыл бұрын
Though it was about the mathematical term but oh well... Just wondering what happens if your asset gets damaged or destroied in the timeframe from when you made the contract till when the buy/sell part happens.
@hardhatpicasso
8 жыл бұрын
its got nothing to do with derivatives
@vasudevpranadas
8 жыл бұрын
Futures & Options are the most common derivatives.. this video covered futures on one type of asset (cow).. but there are hundreds of variations of this and it's all created in the evil minds of bankers to quickly make money
@commodore7838
7 жыл бұрын
whats evil about this?
@ciencias3344
7 жыл бұрын
So if Mad Cow disease happens, you can still sell cows? But at a lower price? I assume you test the other cows and sell what you can? If you have a crop and it is taken by a disease can you still sell the rest at a lower price? This would also increase the price of everyone else's cows since the supply suffered a loss. Should it not increase the price of tested cows? but maybe not because of fear. Pls respond. I have a project and this confused me a bit
@joemctaggart3920
6 жыл бұрын
hardhatpicasso they are in a nutshell a bet on an item reaching a set price thats it its a gamble in effect
@akgj1996
6 жыл бұрын
It does
@thedinosaurstory
10 жыл бұрын
For all the research that I have made, this is the only video that I've understood xDD
@Rav4Star
11 жыл бұрын
You should make more videos regarding finance, you made so much sense!
@keanumoore
7 жыл бұрын
Does anybody know where to find the song that's playing in the background?
@DaveF
6 жыл бұрын
Shit I have calc in 15 minutes and I still don't know what a derivative is
@mynameisnssnssn
10 жыл бұрын
Video is good. It explains only on future contracts, which is a kind of derivatives. Here the investor derives money from the underlying asset(here it is the cow). Derivatives, equities (i.e. stocks) and debt (i.e. bonds and mortgages) are the financial instruments. Financial instruments are legal documents that embody monetary value.
@MonaHamood
11 жыл бұрын
Thank you very much . It's a new term for me .. I've never heard about it . But you did explain it very well Mashallah Thanks again
@thellamasquads
8 жыл бұрын
i just realized this isn't a math video
@jylee4288
8 жыл бұрын
I believe it should be titled what is future contract ?"
@vasudevpranadas
8 жыл бұрын
Futures & Options are the most common derivatives.. this video covered futures on one type of asset (cow).. but there are hundreds of variations of this and it's all created in the evil minds of bankers to quickly make money
@bunnyashish9305
5 жыл бұрын
It more likely to be forward contract bro.
@gdogvibes1
9 жыл бұрын
this Rapu guy didnt even make 10 dollars lol
@Shivaprasad2634
9 жыл бұрын
Cihan Barnett ..It's Ramu bro..
@moeedshaikh1
6 жыл бұрын
Powder hahaha
@digbick657
6 жыл бұрын
And you're a lonely little bitch who got touched by his dad.
@baachibaachichinta4017
5 жыл бұрын
@@Shivaprasad2634 Ya
@jadepinto4321
3 жыл бұрын
@@Shivaprasad2634 thank you
@Rambroo92
7 жыл бұрын
How do we set a stop loss price without a fixed market price anyway? (In the case of cows)
@gagnant4
5 жыл бұрын
I did come here for math, but since I was already here I thought why not find out what a financial derivative is.....I am none the wiser.
@aman2426
5 жыл бұрын
So the futures contract says that I will buy from you at a fixed date and price in the future. And a Future's contract is a type of derivative, because the price of that contract(Financial Security) will depend on the price of cows(Asset on which security is based) in the market. I got this right?
@Gar96229
8 жыл бұрын
From what I understand, basically it means. I'll sell you this thing to you in a years time, you'd better hope what I sell doesn't turn to crap?
@MrBrotmafia
8 жыл бұрын
+David Ryan ^Yes. Or on the other hand I'll buy this thing in a years time, I hope it increases in value by a lot. You don't have to buy the actual underlying (e.g. a cow), just pay for the difference in value.
@trentvannice4740
8 жыл бұрын
he explained what futures are, but there are more derivatives.
@normina457
9 жыл бұрын
Thanks for this ... great job.You could make more of such animations for other finance topics as well.
@mnm121314
8 жыл бұрын
this was explained perfectly. great video!
@harshitamathur9078
6 жыл бұрын
sir ek baat bataiye agar stock exchange mein listed hone ke bad company se inverstors ka ko relation nhi to company kaisa bhi perform kare usse investor ko kaise profit & loss hoga.
@baarla281
4 жыл бұрын
Thanks to u alot, I really understood I was confused with the lecturers slides, but u really put more practical.
@gunthalaharindra1311
5 жыл бұрын
I have a doubt.. when did product ( cow ) is to be delivered either in 2012 or in 2013
@crash4dafun
9 жыл бұрын
I wish there was a stop loss for the U.S. taxpayer...
@jadepinto4321
3 жыл бұрын
haha honestly
@jhpenguinn
2 жыл бұрын
i watched this whole video thinking i was learning calculus
@ramboislviat5746
9 жыл бұрын
Nice video Graphitishow, thank you for sharing your knowledge with us. It's a nice video at all.
@juanma132
11 жыл бұрын
Demand tends to decrease when mad cow disease is present, forcing the price of meat down. People tend to generalize, and rather resort to a substitute good when such a disease is present. I understand your point, but think of it from the customer all the way to the supplier. It's a chain reaction which will lead to a lower price for the cows.If customers wouldn't take such cautious reactions towards this disease then the possibility of paying a higher price for healthy meat would arise.
@vuufke4327
3 жыл бұрын
People.. this is a video about financial derivatives (options/futures/cfd..) not math function derivatives
@alexm4757
6 жыл бұрын
So you buy something with the intention of the seller keeping it in possession till a future date & basically being responsible for it. What’s the difference of buying those cows right away when the contract is signed and selling it on the “future date”???????????? If you believe those cows are going to sell for 200 why not keep buy them upfront rather than a future date???? Someone please explain in reference to the situation for better clarity
@TheSandyKale
8 жыл бұрын
Have you also done a video on an Excel speedometer?
@preritpc
4 жыл бұрын
Can anyone guide me how to get these animations
@roshanghadigaonkar8267
9 жыл бұрын
Awesome , awesome and awesome video....
@muneebansari4801
4 жыл бұрын
In case of the disease and limiting our risk, why would any one want to buy the futures contract from us if even they know that buying the contract will cause a loss for them too? isn't it best to just call off the contract entirely with Ramu (because that's easier to do) rather than try to sell the contract off to someone else? (which is difficult because no one will want to buy that contract)
@danish5087
11 жыл бұрын
A very informative and simple video, but its more about futures contracts and not derivatives.
@prajaktaamit6970
8 жыл бұрын
very nice explaination , it is for a lay man who dont know the concept of terminology of banking
@SlySly741
8 жыл бұрын
Wtf?!? Mad cows still sold on open market?
@hanssmirnov9946
8 жыл бұрын
Can't you put a clause that if the cows drop below a certain value, you can cancel the contract?
@TehKhronicler
12 жыл бұрын
Concise, easy to understand, wonderful. Great style of video.
@salsenani
11 жыл бұрын
what about options and swaps?
@dary1404
8 жыл бұрын
Very valuable video! I need more .Thank you very much.
@rikkifrederiksen2935
8 жыл бұрын
So, exactly where in the video do you explain what a derivative is?
@barobarbijoux2561
11 жыл бұрын
where can we get other videos like this?
@Person-cv5mf
6 жыл бұрын
@1:11 - He did not enter futures contract. He entered a forward contract. A forward contract is entered into where the two parties to the agreement know each other. A futures contract is and agreement that is traded anonymously.
@antonischristodoulou2051
4 жыл бұрын
If he exits the contract at stop loss does he still get the cows?
@riseekr.4137
7 жыл бұрын
already frustrated with maths came for solutions searched for derivative and the first video pop up is yours... asking maths not business.
@h4wokK1ng
10 жыл бұрын
How often do we get an outbreak of Creutzfeldt-Jakob's?
@h4wokK1ng
10 жыл бұрын
Ramu is getting screwed !!!!
@ncamisilengcongca
8 жыл бұрын
You made my life so much easier! !!! Thanks
@faeancestor
6 жыл бұрын
Thanks to this video, I am now prepared for calculus.
@pauljones9661
8 жыл бұрын
so what happens when you cannot find a buyer at your stop loss level? or is one found when you set up a stop loss before the event? Seems to me like a crazy way to invest, and the easy explanation as to how this current fiat economy will collapse entirely in the next weeks and months
@shailipandey9624
5 жыл бұрын
What if broker doesn't find a buyer to bear the loss?
@RaghavaIndra
9 жыл бұрын
Hilarious comments haha can't stop laughing. Thank you guys, I had almost forgot about that mathematical derivative topic. Ah nostalgia!
@rakeshsharma254
6 жыл бұрын
how it is connected to derivatives ??
@prashantgurung7249
4 жыл бұрын
Thank you so much for beautiful explanation!!❤️😍🙏
@ihavemyid
11 жыл бұрын
Realy Helpful Vdo Bro !!! I was very much confused abt this.. but u made it simple to understand..THanks :)
@SoniaYunni
11 жыл бұрын
Thanks for this video and now i understand what do derivatives truly means. :D
@lakshayavarshney78
4 жыл бұрын
Guys listen this video at 0.5 or low speed it will entertain u
@mgkkkkk123
9 жыл бұрын
thanks it is the best clarification I could ever watch..
@shashsrivas
5 жыл бұрын
This is about finanincial term, not to be confused with mathematics
@alexkmile
6 жыл бұрын
this is the best explanation ever!
@amalmurali705
6 жыл бұрын
Good explanation of futures contract, expecting videos of options and swaps
@StarcraftUser
10 жыл бұрын
That's the most white-indian man I've ever seen
@beingindian2655
4 жыл бұрын
Probably, you're still using ill standards of black and white technology.
@shinchiwarrior
8 жыл бұрын
I love the music! is that a Prince song?
@JackIsNotInTheBox
2 жыл бұрын
THIS CHANNEL DESERVES MORE VIEWS!!!
@muhammadashraf2863
11 жыл бұрын
Hey brother, thank for the explanation. MashaAllah, it makes so much sense now. :)
@simgikehifko3986
6 ай бұрын
Thank you so much It's very clear to understand
@sajsanilkumar8733
9 жыл бұрын
This video was very helpful, thanks graphitishow!
@baxter987
4 жыл бұрын
Ty for telling me what future contracts are. What are derivatives?
@indianpride8545
6 жыл бұрын
This video pissed off many math nerds.
@AlcoholicHeritage
10 жыл бұрын
wait a minute, what if no one wants to buy the cow thats down to 50 rupees, what happens to the investor/the ordinairy joe then?
@ProperCBM
11 жыл бұрын
And that, my friends, is what gave way to the recession.
@danielsmith5676
10 жыл бұрын
question: you say you can stop loss and the contract will be sold to someone else.. but whos going to buy a contract that they know is taking a loss? What happens to the contract then? Sounds like no matter what the farmer gets screwed...
@OldBenTrotsky
10 жыл бұрын
That's a good question, the stop-loss contract means that if cows drop to a ₹50 market value, the contract would be sold off to someone else at ₹50 per cow, the original investor still takes the hit of ₹50, but he is guaranteed to lose no more than that, thus limiting his risk. The farmer is unaffected by the futures trading, as he will still sell his cows at the price/time designated in the contract (₹100) regardless of the market value for them at the time. Each person in this deal has incentive to be apart of it: 1.) The farmer has to raise cows for a living, thus he has to spend ₹30 on each cow, he needs them to sell for ₹30 just to break even, but he does not control the market price. As a result, he locks in a futures contract at ₹100 per cow, regardless of market value, he forgoes the possibility of the price soaring to ₹200/cow in favour of eliminating his risk of loss. 2.) The investor locks in the futures contract so that he can get the cows at ₹100, and then sell for a profit on the market, he believes that the price will go up, and so he takes a long position bet on the cow market (a long position means that the investor makes money if the price of cows goes up). 3.) Finally, the purchaser of the stop-loss contract's incentive is the possibility of the price rising back above ₹50/cow. He purchases this futures contract at 1/2 its face value because he believes that the price of cows will rise, allowing him to sell them for profit at market. Hope that helps! :D
@yashshekhar5009
8 жыл бұрын
What you mentioned here is a Forwards Contract, not a Futures Contract. In a Futures Contract the buyer is not obligated to buy an asset in the future but he has the choice to exercise his decision to buy since he was the one who paid money upfront as premium. The seller is obligated to sell it if the buyer wishes to buy. In a Forwards Contract it is rigid both to the buyer as well as the seller.
@RonaldoFearsEboue
8 жыл бұрын
So its basically a form of insurance.
@arnavrajpal7664
7 жыл бұрын
I was here for math, but then I decided to become an investor
@Y0SK3
3 жыл бұрын
But what if nobody's willing to buy that contract from your broker
@jamesb4263
5 жыл бұрын
Very well explained . Thanks !
@mishahul
10 жыл бұрын
thank you for this beautiful video. an example of simplicity. it is very difficult to have an animation type of video. i really appreciate this. Asif Riaz be positive man. Appreciate what others do for you for free. what have you done! If you are a Muslim, remember Allah is As Shakoor meaning appreciative of all the small good things you do. thanks graphitshow.
@PravinBysani
10 жыл бұрын
Finished the video..still waiting for the explanation about derivatives..
@Fermion.
7 жыл бұрын
Came for single variable tangent line derivative functions and accidentally slipped into the Liberal Arts section of "Mathematics / Education".
@lalang389
3 жыл бұрын
He had me in the first half
@timbalandisblack
12 жыл бұрын
For those of you looking at this video hoping for calculus help, stop watching. This is the financial definition for derivative. Also, this is more of an explanation of a futures contract than it is a definition of a derivative. The basic thing to know is that a derivative is a financial instrument whose value depends on another underlying asset. In this case, the futures contract's value depends on another asset, which is the cows in this case. Hope that helps everyone!
@rushirajdhamale1333
4 жыл бұрын
Please keep helping like this. Market more!!!!
@laurenpraiz6186
Жыл бұрын
Concise. I love this video 😍
@fredo2517
10 жыл бұрын
if the contract can add a stop loss to limit the investors losses.... may seem fair to give a small fraction of profit to the other party if there is a certain amount of profit to be made within a certain time... similar to gareth bale's transfer to real madrid, could have benefited southampton. was in his clause but they were paid out by spurs before the sale.
@YouTubeUserNumber1
10 жыл бұрын
Soooo... back to the title: what's a derivative? Haha
@ishpico
10 жыл бұрын
It's already explained in the video.
@garrettbenedek7288
10 жыл бұрын
rfpaul Well they did a terrible job then.
@ishpico
10 жыл бұрын
Well, it's your opinion.
@ishpico
10 жыл бұрын
I think I know what you mean now. The title should have been what are "Futures Contracts" instead of what are "Derivatives"
@soundwavex3
10 жыл бұрын
rfpaul Derivative includes Futures.
@BestMentalism
6 жыл бұрын
thank you for this clear explanation with such a funny accent
@wurth987456
11 жыл бұрын
to you and me it's usually when you tell your bank to sell your market shares in the future for an agreed upon price regardless of their future value. So in effect you're betting that your shares with lose value in the future and the bank is hoping they gain value.
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